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Token

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Token

Terminology

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Network

Tokens are digital representations of an asset on a blockchain. Due to a cryptocurrency network's ability to stay secure through means of consensus, tokens have the ability to retain real world value.

Introduction

One primary distinction of a token is whether it is fungible or non-fungible. Typically, Non-fungible tokens are referred to as NFTs.

Fungible

A fungible token is not unique in comparison to other fungible tokens of the same type. For example, if you own token $XYZ to is no difference than another individuals token $XYZ. These two tokens can be inter exchanged as there is no difference between the two.

Some examples of fungible tokens include $SGB, $FLR, $EXFI, and $SFIN.

Non-fungible

A non-fungible token, or NFT, is unique from one another of the same type. Each token has the ability to carry unique characteristics. For this reason, for example, if you own the non-fungible token $ABC it is very different and unique compared to another individual who may own a non-fungible token $ABC.

Some examples of non-fungible tokens include $888W, $FATCAT, $PUNKS, and $PANDAS

Fungible vs Non-fungible

Native

A native token is a token that is an integral part of its parent network and is created during the network's genesis. Typically, native tokens have specific function for their parent network such as paying gas fees and for network governance.

Some examples of native tokens include $SGB and $FLR.

 

Non-native

The majority of tokens on a network are non-native. Non-native tokens are usually independently developed and are used within projects for specific purposes.

Some examples of non-native tokens include $EXFI and $SFIN.

Native vs Non-Native